Coop and Lucas discuss the importance of physical media. Bonus: libraries may soon be able to stock Kpop Demon Hunters on disc!
Disclaimer:The views and opinions expressed by the participants in this chatlog are not the views of Anime News Network. Full Disclosure: Coop has worked with Discotek Media, MediaOCD, and AnimEigo. His opinions given here are purely his own and do not reflect those of his employers.
Lucas
Coop, a dirty secret of the streaming era of media, is that no one eyeing up this distribution model was quite sure how the money end of things was supposed to work. Much like the "pivot to video" or "social first" digital media strategies that decimated legacy journalistic and entertainment institutions (and was based on numbers literally made up by our tech overlords), everyone saw the skyrocketed numbers generated by streaming platforms and wanted to get in on that trend before they lost out on the growth opportunities. Well, now the other shoe has dropped, and while global viewership is at an all-time high for media like anime, that hasn't necessarily translated into tremendously higher revenue.
As Richardson Handjaja reports for Animenomics, "Japan's domestic anime home video market shrank by a stunning 31 percent in 2025." While you and I might not quite have the expertise to report on Japan's physical media sales like Richardson, this reporting sure does make me want to talk about how physical media is doing stateside and try to find whatever glimmers of hope we can for our fellow physical media enthusiasts.
Coop
Given the amount of Discotek-and-MediaOCD-flavored disclaimers I've shot out over the course of my TWIA tenure, it's plain to see that I have a vested interest in this part of the business, Lucas. However, it goes far beyond the professional aspect for me. Long before I wrote a single line of copy, I was an FYE rat—digging through the anime section in hopes of finding my next favorite series. That's how I discovered Project A-Ko and Black Lagoon, to name a few titles. Then, after college, I worked at a Family Video as the company teetered on the edge of completely falling apart. Not a glamorous job, but it taught me a ton about how people interact with film and television in a communal sense.
Photo by Coop Bicknell
Last year, Chris and I talked a fair bit about our own collecting stories, quirky releases, and the classics held in Aniplex Jail. However, our chat was more from the perspective of dyed-in-the-wool collectors, rather than the greater anime-watching audience... And perhaps a touch disconnected from streaming in its then-current form. As for the state of North American home video, it's shifted a wee bit since then. Additionally, I've further realized that the business tends to be way more cut and dry than most fan passion might imply.
As tempting as it is to invent conspiracies or out-there hot takes to explain developments in this industry, it all really is just business. As Jerome points out in an Answerman column from last month, increasingly that business is happening through Crunchyroll; especially on the merch side after they acquired beloved anime merchandise distributor Right Stuf a few years back.
How are you feeling about the big orange's ability to deliver these goods after an inventory reduction at their warehouse, an apperant reduction of staff at said warehouse, and a re-org of their e-commerce division?
Frankly, I wasn't particularly hopeful for them to begin with. Between numerous damaged orders from customers, shoddy packaging, a disc mailed in a napkin, and the final delivery of theDirty PairKickstarter, it's painfully clear that everything Right Stuf had been sold on is now gone. This includes the company's home video wing, Nozomi Entertainment.
Photo by Coop Bicknell
Despite my own feelings and those of many others, there is a degree of business sense to "we don't need two production houses." However, that also twists the knife-shaped thought of "we bought this to kill it" in my brain. Crunchyroll (or more accurately, Funimation) was already producing its own sets, and it seems to be at a decent clip over the past year or so. It's primarily the huge titles and the occasional set most people would laugh at buying for full MSRP, but the company's still doing it. Though it's also telling to me that when I see Crunchy's titles in a Walmart or the like, it's usually a good US$20 below that MSRP. Doesn't help either that the "grab a movie as a treat while grocery shopping" idea is dying out, thanks to the exploding cost of living and shrinking media sections. Like, that Frieren Season 1 Part 2 Set is great, but US$220 is a huge ask these days. Mind you, that edition of the set is only available at online retailers.
I know that anime merchandise sales have quietly been a load-bearing and explosive segment of the anime economy for a while now, but Crunchyroll taking over Right Stuf always seemed a little odd to me. They're a streaming service that constantly wants their numbers to go up, and anime Blu-rays being widely accessible works against that. It's a synergistic move in a large sense, but it hurts the numbers that their corporate overlords look at. Gee, it's almost like Crunchyroll has a history of creating controversy and losing goodwill via short-sighted decision making...
Nevertheless, I'm with you on the illegal tariffs and the Trump administration's latest round of human rights violations in Iran, making it harder for any of us to get the little treats that make this deeply flawed world worth living in. I think that's why we're starting to see so many companies pivot to digital goods, which are less impacted by tariffs and broadly easier to plan business activities around. While it's only anime in the sense that it's badass, I'm loving Suda 51's latest game Romeo is a Dead Man, but I've gotta believe its digital only release is due to the rising costs of releasing a hardcopy of any media these days.
There's definitely that part of the equation to consider (games have been forced to face more abruptly due to the industry's nauseating amount of moving parts), but TV and film might be a different story. There's less of a buy-in on the consumer's part with a streaming service in comparison to a single game. You paid that US$50 for Romeo is a Dead Man, so there's a good chance you're going to get through it at some point. A physical copy would be great for preservation's sake, but you've got it on your system. When it comes to streaming (where Crunchy wants its viewers), you're dumped into a huge catalog that's easy to get lost in, and you don't even have a license to. Digital licenses don't mean a whole lot in my eyes, but it's a bare minimum given where we're at now. Heck, a digital license (through buying it on Prime Video) is how I've been able to watch the first season of Nirvanna The Band The Show. I'm more likely to get through that than another show on my streaming queue.
You raise a good point about streaming being an unreliable way to experience media that you're paying for. This isn't an anime example either, but my partner and I have been rewatching 30 Rock and have discovered that several episodes are missing from Peacock's offerings due to content concerns or them being broadcast live originally. As we've seen with anime over and over again, the release quality of different distributions can vary wildly, and it sucks when a subpar version of a show becomes the one that's the most accessible by virtue of ending up on a streaming platform.
And I feel you on wanting a guarantee on the thing you're paying for still being accessible. I know people are talking about this upcoming Hulu merge into Disney+ being a potential cost saver, but a lot of anime have quietly made Hulu their home online, and I'm not confident they'll survive the jump to Disney+
That's really where physical media shines—it's the closest thing to an iron-clad guarantee you can get. There are a handful of exceptions when it comes to games, but home video's got your back as long as you take care of your collection. Expired licenses? Titles gone from streaming? Aniplex Jail striking again? A home video release itself isn't always guaranteed, but it's better than a work fading into obscurity. You can actually hold on to it, regardless of any rights issues. I think that's part of why younger audiences in larger cities are flocking toward the few video stores left. Less flash-in-the-pan noise, more tangible discovery.
Photo by Coop Bicknell
For instance, I wish more people could see Birdy the Mighty: Decode or Baccano!, but at least it's still physically available somewhere. Though I wouldn't bother with those scalper prices. Hopefully they're available for rent at least one mom and pop video store... Or a library!
Those scalper prices are a scourge and further proof that capitalism is the greatest sin of mankind, but physical media can also be more affordable depending on a person's viewing habits! I actually did the math in college because I had one group of friends who only had Netflix to watch The Office and another group that only had it to watch Friends, and they could have bought the DVD box set of either show for what six months of Netflix cost back then. Especially as streaming rapidly becomes "nu-cable," it's encouraging to see young people still finding ways to be frugal!
And, you're right. Much like how I sprinted to buy a Nintendo Switch 2 last year because I was worried the price was only going to go up, I should probably think about locking down hard copies of my beloved Durarara!!, because I only imagine these costs are going to soar if the title gets lost in the Disney+ migration.
Speaking to the frugality aspect of home video, I've often opted to grab DVD releases of recent-ish shows because it's a cost-effective way of toe-dipping. It also means I have that buy-in, even if it was only ten or twelve bucks. Yowamushi Pedal, Wizard Barristers, and most recently, Gatchaman Crowds, are examples of DVDs I've picked up on a cheap whim. Not expensive or hard to find, at least at that moment. Yes, I know I need to get on Chihayafuru, but that's the beauty of physical, baby! I'll get to it eventually, and I don't need to worry about burning money on a sub I'm not using in the meantime.
Photo by Coop Bicknell
DVDs aren't as common in the anime space these days, but there are some exceptions here and there. The upcoming releases of Captain Tsubasa and Voltron: Legendary Defender come to mind.
I'm in the fortunate position where I'm able to expense most of my streaming subscriptions or at least write them off on my taxes, but I continue to be impressed by how the older anime tapes just keep circulating. Granted, I live in a major metropolitan area, but I can't go to a flea market without seeing at least a couple of big-name titles available for a couple of bucks a piece.
And sometimes you run into stuff that's quietly super influential to how subbed anime is distributed and don't even realize it until you send a pic of it to a Discord server filled with anime ball knowers!
Now that's some anime magic right there.
Of course, getting lucky at flea markets and thrift shops is no substitute for there being a couple of dedicated anime merch and physical media vendors, but it's encouraging to know that this stuff is still out there for the people who are willing to go digging for it.
You really have to give it up for the people keeping this niche market alive. Physical media sales aren't blowing doors off, but it's remaining stable enough thanks to boutique publishers who know their audience. In our neck of the woods, the conversation will very obviously swing toward companies like AnimEigo, Discotek, and Media Blasters, but they're just a few of many. There's also Vinegar Syndrome, Cult Epics, and of course, Criterion. The last company on that list might be dropping KPop Demon Hunters in the near future, but there's a good chance that the folks who buy it will be exposed to further titles from the collection...and other boutique publishers.
While I initially balked at KPop Demon Huntersjoining the prestigious Criterion collection, I would not be surprised if it sold better than any other Blu-ray in the history of the format, and can't blame Criterion for wanting to make enough money to cover operational costs for like the next decade. Sometimes you've gotta take the easy wins, and I won't fault them for that!
Really, with physical media starting to tick back upward and streaming services seemingly getting more expensive every couple of months, it feels like the only cap to a full-on physical media renaissance is how limited the number of people with a Blu-ray player is. Makes me wonder if we'll start seeing people buy used PlayStation 4s, or even PlayStation 3s, just to be able to cut the new virtual cord.
There's always hunting down a cheap Blu-ray player, at least for the moment. We can't forget that there's been a push to remove disc drives from game systems, and who's to say if standalone Blu-ray players won't go along with them? Which also brings me to another point: if you want a certain show, movie, or device, it's probably better to grab it sooner rather than later. Kind of like your dilemma with the Switch 2, Lucas.
Does anybody besides me remember that stealing DVD players is a central plot point in the first Fast and Furious movie and the first season of The Sopranos? We could very well see an uptick in theft of these kinds of goods again, not because of skyrocketing demand, but rather because they could likely get stupid expensive.
The US economy and infrastructure aren't really spec'd to manufacture any product involved in physical media anymore, so all of this stuff needs to be imported...which means it's about to get more expensive as rising fuel costs make transporting anything far more costly.
That brings me to the piracy part of this conversation. I know some folks are going to say, "No skin off my back, I'll just torrent it." While a hardcore enthusiast might do that if there's no official release to support, the vast majority of people DO NOT want to jump through additional hoops just to watch or play something. They want the least amount of financial and mental friction possible. Speaking for myself, I just want to press the button on my TV or put in a disc, then press the button—that's it. This isn't the case in other parts of the world for sure, but I definitely see it being that way for the North American market. Look to that old Gabe Newell adage.
Well, the good news there is that pirating anime just got a fair bit harder with the shuttering of HiAnime, but you're right that piracy will always be a persistent problem in anime and the broader media landscape.
Which makes now a great time to remind folks that if the stuff you watch doesn't make money, they're not going to make more of it! Even as we all have to be more budget-conscious, voting with your dollar matters more than ever.
If you want to see more titles from a specific series or company, voting with those precious dollars lets the people in charge know that there's an appetite for more—be it a huge studio or small boutique. A vocal groundswell is great, but cash is king.
While physical media has come in and out of popularity across a variety of different formats since as far back as the 70s, it's clear that people want to own the stuff they love in one way or another. While the popularity of physical media may ebb and flow over time, this is clearly a "bend, don't break" market that's going to stick around for as long as people are passionate about art. (So forever basically.)
As our anime forefathers once said, "Keep circulating the tapes, kids."
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